‘A fight to the death’ appears to be in prospect as staff at Bus Éireann started an all-out indefinite strike from today (0001hrs, Friday 24 March).
The strike represents a serious escalation of the Bus Éireann row, which could push the company over the edge into insolvency.
It lost €9.4m last year and a further €50,000 per day in January. Each strike day will cost another €500,000, which the company insists is unsustainable.
Bus Éireann says that the losses for January and February in 2017 are 41% higher than for the same period last year.
The dispute is over the company's implementation of cost reduction measures without union agreement.
The strike will disrupt travel for 110,000 passengers a day, though not all will be stranded. The National Transport Authority has reminded passengers that there are alternative private operators on many routes.
Bus Éireann is concerned that is passengers defect to them, they may never return, further damaging revenue at the state-owned company.
While Dublin Bus is not affected, and Bus Éireann’s School Transport services, GoBe.ie, Eurolines and Cross-Border Translink “should not be affected” by the strike, all other services are.
In a statement Bus Éireann says: “Industrial action will cause major inconvenience to our customers and exacerbate the perilous financial situation at the company.
“The company is facing insolvency in a few short months and not acting to implement cost savings urgently would be completely irresponsible.
“The Board and management have twice postponed the introduction of efficiency measures – which are all within current collective agreements, and do not affect basic wages or current terms and conditions – to allow for 10 days of talks in two separate sessions at the Workplace Relations Commission (WRC).
“We sought savings of €12m from a payroll of €133m – or 9% – but Unions were only prepared to cede €0.5m on the current overtime bill of €13m.
“The efficiencies we are seeking to introduce relate to work practices, which must be put in place if the company is to have a viable and sustainable future.”
Union SIPTU says the blame for the strike must be laid at the door of management and the Minister for Transport Shane Ross.
Divisional Organiser Willie Noone said that staff had "no other choice" but to strike in an attempt to protect their livelihoods.
He said that the unions had worked hard to keep staff at work to this point given the anger at company proposals to cut pay.
Apologising to customers for the "highly regrettable" inconvenience caused by the strike, Bus Éireann, Chief Commercial Officer Stephen Kent says the company has run out of time and needs to implement the cost-cutting measures it has put forward.
He said the company is doing everything it can to minimise all non-payroll costs and has eliminated all discretionary spending.
Management has said that it had to proceed with unilateral implementation of cuts due to the financial crisis, and because unions would not agree to any reductions in take-home pay or unnecessary overtime.
However, the unions have accused the company of seeking to introduce so-called yellow-pack terms and conditions in a race to the bottom, to groom the company for privatisation.
